Inventory Levels Continue to Grow Throughout South Florida
A slower than average winter/spring season provided an increase in housing inventory throughout South Florida. This is a welcome event for buyers who have struggled with low inventory levels in recent years. Despite the increase, single family inventory remains quite low at 4.4 months of supply. This is still a seller’s market. On the other hand, condo inventory rose to a more normal level of 7.8 months of supply. This is approaching a buyers market.
Single family home sales were up just 1% from last year to 3,790 closed sales in the tri-county area. Median sale prices were up 4.9% from last May, but down slightly from last month’s peak of $650,000. Until we reach normal inventory levels we should expect single family home prices to continue going up.
Condo sales activity was down 11% in May with only 3,763 closed sales last month. However, median sale prices were up 7.6% to an all time high of $355,000. This is a testament to the strength of our condo market. While sales are sluggish in older buildings with assessments and ongoing renovations, the units in well maintained buildings are still going up in price. This is promising and we expect sales volume to return to normal as more buildings complete their required improvements. In the meantime, a local experienced agent can certainly help you navigate our challenging condo market.
Despite increased condo inventory in South Florida, median sale prices continue to rise reaching an all-time high of $355,000 in May.
Broward County
The median sale price for a single family home in Broward County is up 6.8% over last year to $625,000. This is down slightly from the previous month’s record of $635,000. Inventory continues to creep up reaching 4.3 months of supply. This is a seller’s market and the lowest single family inventory in the tri-county area.
The median price for condos and townhomes is 4.4% from last year to $282,000, despite low sales volume and increasing supply. Condo inventory is at a comfortable equilibrium of 7.6 months of supply. This is essentially neither a buyer’s or seller’s market.
The single family market in Broward County is still favoring sellers with only 4.3 months of supply.
Broward County, Florida includes the coastal communities of Fort Lauderdale, Pompano Beach, Lauderdale-by-the-Sea, Lighthouse Point, Hillsboro Beach and Deerfield Beach.
Palm Beach County
The median sale price of a single family home in Palm Beach County was up 3.6% over last year to $645,000. This is just slightly below the all-time high of $650,000 in the previous month. Single family inventory is slightly up, but remains low at only 4.4 months of supply. This is a seller’s market.
The median sale price of condos and townhomes in Palm Beach County was up 7.9% over last year to $340,000, which is an all time-high. Condo inventory is a bit tighter in Palm Beach County with 7 months of supply. This is essentially an equilibrium market, not favoring buyers or sellers.
Condo inventory in Palm Beach County is the lowest in South Florida at 7 months of supply, but still at equilibrium, not favoring buyers or sellers.
Palm Beach County, Florida includes the coastal communities of Boca Raton, Delray Beach, Boynton Beach, Lantana, Manalapan, West Palm Beach, Singer Island, North Palm Beach, Juno Beach and Jupiter.
Miami-Dade County
The median sale price of a single family home in Miami Dade County was up 4.8% from last year to $650,000. This is down slightly from the all-time high in the previous month. Inventory has remained flat since January with only 4.4 months of supply. This is still a seller’s market.
The median price for condos and townhomes in Miami Dade County was only slightly up over last year to $425,000, but down from the peak in March of $445,000. Perhaps inventory levels in Miami are starting to affect median sale prices? Condo inventory in Miami is the highest in tri-county area at 8.6 months of supply. This is a buyer’s market.
Condo inventory in Miami/Dade County is the highest in South Florida at 8.6 months of supply. This is a buyer’s market. Is it starting to affect median sale prices?
Miami-Dade County includes the coastal communities of Miami, Miami Beach, Sunny Isles Beach, Golden Beach, Bal Harbour, Surfside and Key Biscayne.
Summary
May is usually a month where we see more real estate closings due to the buying activity in the busy winter months. This year is a bit different, due in part to our changing condo market. Many older buildings are trying to keep up with new regulations regarding inspections and reserve requirements. As more newly renovated buildings come online we should see increased volume and a return to normal transaction volume. In the meantime, there are plenty of good deals to be had in our condo market. Single family remains strong throughout South Florida with low supply and steadily increasing median sale prices. Closed sale volume remains low across the entire market, but that could change quickly when interest rates come down. Serious buyers shouldn’t wait for that to happen. When interest rates come down more buyers will enter the market pushing prices even higher. Now is a good time to buy, but find an agent who specializes in our local market. Their hard work, patience and local knowledge will pay off.
Are you thinking of selling? Every seller situation is different, so its hard to say if now is your best time to sell. For example, if you own a single family home in a tight market and you are considering downsizing to a smaller condo, then now might be a perfect time. Consult with your By The Sea Realty agent to determine your best sell/buy strategy. We utilize a suite of seller tools to help you accomplish your real estate goals. Its starts with our industry leading Cloud CMA.
For a detailed market analysis of your condo or single family home, or for professional assistance with your home search in South Florida please contact one of our local trusted agents.
